LISLE, Ill., Nov. 13, 2019 /PRNewswire/ -- Navistar
International Corporation (NYSE: NAV) today announced that the
six-week strike of the United Auto Workers (UAW) union at General
Motors Corporation (GM) impacted the company's ability to deliver
approximately 5,000 vehicles to customers during the company's
fiscal fourth quarter of 2019. Due to Navistar's lost production,
the company's 2019 revenue and adjusted EBITDA is expected to be
impacted by approximately $140
million and $15 million,
respectively.
"We are pleased that we have resumed production at our
Springfield, Ohio truck assembly
plant last week," said Walter G.
Borst, executive vice president and chief financial officer,
Navistar. "However, the shutdown of our Springfield plant affected our workforce and
the delivery of certain units to customers. As a result, our 2019
full year revenue and adjusted EBITDA is now expected to be at the
low end of our guidance range."
The UAW's six-week strike at GM impacted the delivery of certain
components to Navistar's Springfield,
Ohio truck assembly plant (Springfield plant) due to production shutdowns
at GM facilities and affiliated suppliers. As a result, Navistar
halted production at its Springfield plant on September 23, suspending production of GM-branded
vehicles, as well as Navistar's own commercial trucks. On
November 4, Navistar resumed
production at its Springfield
plant. Navistar's decision to halt production at the Springfield plant impacted approximately 1,500
plant workers and the delivery of approximately 5,000 vehicles to
customers. The affected vehicles included the cutaway model of GM's
G Vans, Class 4/5 trucks, and other commercial vehicles.
In late 2018, Navistar and GM signed a long-term agreement to
develop and assemble medium-duty, conventional cab Class 4/5
commercial vehicles. The two companies also have an agreement under
which Navistar manufactures the cutaway model of GM's G Van.
About Navistar
Navistar International Corporation
(NYSE: NAV) is a holding company whose subsidiaries and affiliates
produce International® brand commercial trucks,
proprietary diesel engines, and IC Bus® brand school and
commercial buses. An affiliate also provides truck and diesel
engine service parts. Another affiliate offers financing services.
Additional information is available at www.Navistar.com.
Forward-Looking Statement
Information provided and
statements contained in this report that are not purely historical
are forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended ("Securities Act"), Section
21E of the Securities Exchange Act of 1934, as amended ("Exchange
Act"), and the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements only speak as of the date of this
report and the company assumes no obligation to update the
information included in this report. Such forward-looking
statements include information concerning our possible or assumed
future results of operations, including descriptions of our
business strategy. These statements often include words such as
believe, expect, anticipate, intend, plan, estimate, or similar
expressions. These statements are not guarantees of performance or
results and they involve risks, uncertainties, and assumptions. For
a further description of these factors, see the risk factors set
forth in our filings with the Securities and Exchange Commission,
including our annual report on Form 10-K for the fiscal year ended
October 31, 2018, which was filed on
December 18, 2018. Although we
believe that these forward-looking statements are based on
reasonable assumptions, there are many factors that could affect
our actual financial results or results of operations and could
cause actual results to differ materially from those in the
forward-looking statements. All future written and oral
forward-looking statements by us or persons acting on our behalf
are expressly qualified in their entirety by the cautionary
statements contained or referred to above. Except for our ongoing
obligations to disclose material information as required by the
federal securities laws, we do not have any obligations or
intention to release publicly any revisions to any forward-looking
statements to reflect events or circumstances in the future or to
reflect the occurrence of unanticipated events.
All marks are trademarks of their respective owners.
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SOURCE Navistar International Corporation